Mattos expects to select up to eight investments among real estate, infrastructure and industrial companies in so-called special situations. These may be companies with an unsustainable debt burden, involvement of controlling shareholders in corruption probes or regulatory hurdles, Mattos said in an interview in Sao Paulo.

IG4’s first fund raised around 400 million reais ($124 million) to invest in sanitation company Iguá Saneamento SA. The company, formerly known as CAB Ambiental, was acquired in July from the group controlling Galvão Engenharia SA, one of Brazil’s construction conglomerates forced to sell assets after being targeted in Brazil’s largest corruption probe.

The second fund has raised $100 million so far with Park Hill Group, a division of PJT Partners Inc, acting as a placement agent, Mattos said.

Mattos, a former executive of GP Investments Ltd, was one of the executives involved in creating BR Towers, one of the largest independent tower management companies in Brazil, through the acquisition of towers from phone carriers operating in the country. He left GP in 2015 to found his own firm.